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Case Study: Nypro - Essay Example

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Once the company reached the one billion dollar revenue mark the firm changed its strategy. The new CEO changed the emphasis to focus…
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Case Study: Nypro

A primary strategy that helped the company achieve high levels of growth in short periods of time was the use of optimal manufacturing location selection. Nypro would build its injection molding manufacturing plants near the facilities of its major customer. The advantages of this strategy included the fact that it allowed the company to provide better customer service and improved the supply chain logistics. One of the negative aspects of this strategy was that the company placed too much emphasis on its existing customers. Normally the expansion of added location is done in order to penetrate new existing markets. The strategic approach of Nypro was limiting the company’s ability to expand into other foreign marketplaces. Other key success factors at Nypro were reorganizing business segments, company focus on profitability, and diversity. Nypro benefited from the reorganization of its business segments because the firm was able to perform a better evaluation of its operations in order to eliminate wasteful processes and increase the overall efficiency at Nypro. The emphasis the company placed on profitability allowed the enterprise to pay close attention to details. The negative aspect of the strategic approach was that it raised the cost structure of the company. The use of diversity at Nypro was advantageous because diversity provides corporations with a workforce that has more ideas and different perspectives on how to deal with problems. The problems or risk associated with diversity are that if is not properly managed it can may lead to interpersonal conflicts among the employee staff.
Nypro utilizes a matrix organizational structure that is divided into three dimensions: regional, functional, and mega customers. The reason Nypro choose to change to a matrix organizational structure in 2002 was to optimize its business globally and maximize its performance in every country ... Read More
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